home gTLD's, ICANN You Just Signed a Registry Contract With ICANN. What Are Your Plans?

You Just Signed a Registry Contract With ICANN. What Are Your Plans?

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Back on February 4, 2013, I wrote a CircleID post entitled, ‘How the registrar Cash Flow Model Could Collapse with New ICANN gTLDs.’
 
My key point back then was this: new gTLD applicants need to be mindful of how the cash flow policies of their registry (and of their back-end service provider) could impact whether their TLD is actively promoted by ICANN registrars.
 
When ICANN registrars were first established, all of the business risk of domain name registrations was placed on Registrars. From pre-payments for future registrations to lack of credit policies, registries have historically assumed near-zero risk. This is going to change.
 
The introduction of hundreds of new gTLD’s is going to fundamentally change the risk-reward relationship between registries and ICANN registrars. Of course, registries now have the option of becoming vertically-integrated with their own registrar and assuming all of the risk. But if new gTLD registries want to utilize and maximize participation by ICANN registrars for distribution, then TLD registries will need to assume more business risk in the relationship.
 
Of course, a more cooperative relationship with registrars is just one of many elements that will contribute towards business success of a new registry. Registrars will want to see evidence of a well-designed business strategy and marketing plan. Read more from blog by Thomas Barrett

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James Barnley

I’m the editor of the DomainingAfrica. I write about internet and social media, focusing mainly on Domains. As a subscriber to my newsletter, you’ll get a lot of information on Domain Issues, ICANN, new gtld’s, Mobile technology and social media.

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